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How would you describe your progress in reducing chemical toxicity and using greener frac additives?

In general the drive is for improvements in three areas: lowering chemical volumes, improved environmental fate, and lower toxicity. The strategies include: . Overall chemical volume reduction . Reduction in Volatile Organic Carbon (VOC) emissions less volatile solvents . Reduction in CO2 emissions via transporting lower chemical volumes . Reduction in chemical component toxicity including the elimination of diesel, BTX, endocrine disruptors, and carcinogens Use of more bio-degradable chemical components and migration to EPA DFE listed components Use of chemical components that are less bio accumulative (accumulation of substances, such as pesticides, or other organic chemicals in an organism.)

6. How do energy producers organize/manage their chemical selection and how does this factor into contractor selection? The best approach is for the operator is to enlist a subject matter expert (SME) from the chemical industry to monitor and control chemical recommendations. Apache has hired an SME to review drilling, fracturing, and production chemicals used. The best approach is for the expert to review all chemicals recommended and review with the vendors Environm ental Health & Safety (EHS) group. This will ensure compliance with the various regulatory groups for air, water, waste, etc. while advocating for greener ingredients that are more sustainable. Companies should also incorporate guidance from organizations like the EPAs Design for the Environment (DFE) program, which helps consumers, businesses and institutional buyers identify products that are cost effective and safer for the environment. 7. What are the contractors/chemical suppliers doing to reduce chemical toxicity? Many have developed ranking systems. They are also mothballing older products, while developing more environmentally sustainable products. Also operators, contractors and service companies are participating in more forums in order to learn from each other, learn new techniques and products. Apache personnel chair both the Society of Petroleum Engineers (SPE) and American Chemistry Society (ACS) Green Chemistry forums to further the use of greener chemistry in frac operations.

. Apaches goal is to reduce and eliminate chemical use while striving to use EPA DFE-listed chemistries via its new sourcing model for chemicals.

By employing more effective chemicals during hydraulic fracturing, oil and gas companies are hoping to boost production, cut costs and reduce the environmental impact.

The greatest progress in reducing chemical toxicity to date is occurring with surfactants, friction reducers and scale inhibitors. Biocides and acid corrosion inhibitors have proven more difficult, but new approaches are on the horizon.

. Our surface casing programs are carefully designed and executed to protect freshwater resources. This includes quality verification by pressure tests and fully circulating cement to surface and physical inspections. . We have programs to test and monitor water quality in both new and established producing areas. . Apache carefully monitors and records essential data from cement jobs and performs evaluations to ensure adequate isolation of producing intervals, including zonal isolation from any water resources. We use API technical documents as our primary guidance for selecting cementing materials. . Apache requires detailed and continuous pressure tests and monitoring of hydraulic fracturing jobs. . We have special procedures in place for specifically identified geological circumstances. . We make internal efforts to minimize our use of chemicals overall and to select hydraulic fracturing fluid additives that minimize environmental or health concerns. . Apache does not allow the use of diesel fuel in hydraulic fracturing stimulation and insists that operations use alternatives to BTEX additives whenever reasonably possible. We have worked with major service companies to pioneer the use of largescale natural gas fueled engines in our well-site operations that mitigate air emissions. We continue to maximize green completions and are working to alleviate flaring issues caused by the lack of adequate pipeline and gathering infrastructure

Enlisting a chemical subject matter expert (SME): Historically, operators relied on service companies to provide best technology in compliance, costs, and performance. Enlisting an experienced chemical expert allows companies to use and develop best technology for sustainable cost performance while allowing them to audit systems used by service companies. Many times a simple product review can improve sustainability and cost performance and reduce chemical use rates.

Drilling fluids tagged with unique markers were injected more than 8,000 feet below the surface, but were not detected in a monitoring zone 3,000 feet higher, according to the preliminary results of the study. That means the chemical substances stayed about a mile away from drinking water supplies.

CO2 EOR PROJECT At Midale, the CO2 EOR project involves the injection into the production reservoir of carbon dioxide waste transported from a coal-fired electric generating plant, restoring pressure in the field and enabling production. The carbon dioxide, which would otherwise be emitted into the atmosphere, is safely stored in impermeable rock.

Solar Energy to reduce energy consumption Noel is also the first full field gas development in Canada to apply a solar photo-voltaic system, which generates solar electricity on site and stores it in batteries to help provide a permanent energy supply. A thermal electric generator is used when there is reduced sunlight for more than a week.

The methane leaks were reduced with better valves and gaskets, maintenance and monitoring. Such fixes are also cost-effective since the industry ends up with more product to sell.

CUTTING DOWN CO2 BY GROWING TREES


Apache is planting trees lots of them that help remove carbon dioxide. Since 2005, Apache has awarded 3.2 million trees to communities across 16 U.S. states through our philanthropic affiliate. We estimate a typical tree will remove 110 pounds of carbon dioxide per year over the 50-year average life of the tree. Administered by the Apache Foundation to benefit nonprofit groups and communities, the Apache Tree Grant Program does not offset the companys carbon emissions.

Reuse of water Produced water and reused frac waters can have contamination consisting of: iron, Calcium Barium Strontium Sulfate Oily Solids Soluble Hydrocarbon Polymer & Gel Solids, Clays, Sand, Silt Salts, Monovalent and Divalent Metals Scale & Corrosion Inhibitors Bacteria

The following procedure is currently being adopted to treat produced water in the Haynesville Shale wells: Oxidation to remove iron, bacteria and polymers. Oxidizers such as hydrogen peroxide or hypochlorite can be used. Flocculate solids. Use classic water treatment chemistry to

remove suspended solids and scale by precipitation FLOC & DROP or Pellets Filter to 25 micron (Figure 4). Add scale inhibitor to maintain water compatibility.

The salt becomes an issue when the content becomes too high. In this case the salt water is diluted with clean water as needed to the desired specification. If the wrong friction reducer is used, then a higher concentration is pumped to achieve the same effect, and potentially more formation damage will occur or more breaker is needed. The water must be treated with a biocide or can be treated with ultraviolet (UV) light. Even in this case a bactericide is recommended to prevent growth of SR bacteria downhole. Parker et al4 describes a high performance fluid (HPF) system that can be recovered and reused. This HPF has reduced molecular weight polymers that do not cause high degrees of formation damage or reduces conductivity in proppant packs. Hence the HPF does not need chemical breakers thus allowing for reuse of the fluid without degradation of viscosity. Reusing the treatment fluid include savings from reduced water

USING CLEAN-BURNING NATURAL GAS TO POWER HYDRAULIC FRACTURING instead of diesel

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